FAR 47.403-3 — Disallowance of expenditures
Regulatory text. Not legal advice.
(a)
(a) Agencies shall disallow expenditures for U.S. Government-financed commercial international air transportation on foreign-flag air carriers unless there is attached to the appropriate voucher a memorandum adequately explaining why service by U.S.-flag air carriers was not available, or why it was necessary to use foreign-flag air carriers.
(b)
(b) When the travel is by indirect route or the traveler otherwise fails to use available U.S.-flag air carrier service, the amount to be disallowed against the traveler is based on the loss of revenues suffered by U.S.-flag air carriers as determined under the following formula, which is prescribed and more fully explained in 56 Comp. Gen. 209 (1977):
(c)
(c) The justification requirement is satisfied by the contractor’s use of a statement similar to the one contained in the clause at FAR 52.247-63, Preference for U.S.-Flag Air Carriers. (See FAR 47.405.)
Citation history: [48 FR 42424, Sept. 19, 1983, as amended at 62 FR 237, Jan. 2, 1997]
Source: eCFR • Pulled 2026-04-16